...Bus. 463 Project Report, Extended Geo Mean, Jensen-Alpha Measure April 1st, 2013 Table of Contents Client Description……………………………………………………………………………………3 Discussion of Models……………………………………………………………………………...4 Markowitz Model………………………………………………………………………..4-5 Single-Index Model………………………………………………………………………..5 Geometric Mean…………………………………………………………………………….6 Recommendations…………………………………………………………………………………6-7 Analysis……………………………………………………………………………………………………7 Appendix A………………………………………………………………………………………………8 References……………………………………………………………………………………………….9 Client Description Joe Schedin is 45-years-old, who has spent the last 18 years working for Costco as a meat cutter. He will be switching jobs as he wants to do something new and more exciting so he will be able to contribute $110,000 to add to the current portfolio. He wants to be able to retire in 20 years, by age 65, and would like to have at least a million dollars for retirement as well as a surplus of greater than or at least $40,000 in order to pay for his new step-son’s college fund. He would like to be able to only use about half of the retirement to live off of, and keep the rest either invested in his portfolio, or set up college funds, IRA’s, etc. to help his family with his grandchildren and give them a chance for a higher education. With this information I was able to calculate a yearly rate of return needed to generate at least $1.1 million dollars with the initial investment of $152,212, compounded over...
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...or subscribe for any Ducati Securities, nor shall they form the basis of, or be relied on in connection with any contract or commitment to purchase Ducati Securities. Any recipient of this document considering a purchase of Ducati Securities in a rights issue following publication of an Italian prospectus in connection therewith is hereby reminded that any such purchase should be made solely on the basis of the information contained in such Italian prospectus. The information in these materials includes forward-looking statements, concerning in particular economic and financial trends, which have been made by the management and are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions. In light of this, the events described in the forward-looking statements may not occur. These materials are not being issued in the United States of America and should not be distributed to United States persons or publications with a general circulation in the United States. These materials are not an offer to sell or issue Ducati Securities in the United States. No public offering of Ducati Securities will be made in the United States. Ducati Securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be sold or issued in the United States absent registration r an exemption from registration under the Securities Act. The distribution of these...
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...presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Our opinion of a company’s prospects should not be considered a guarantee of future events. Investors are reminded that there can be no assurance that past performance will continue, and that a mutual fund’s current and future portfolio holdings always are subject to risk. As with all mutual funds, investing in the Fairholme Fund involves risk including potential loss of principal. Opinions expressed are those of the author and/or Fairholme Capital Management, L.L.C. and should not be considered a forecast of future events, a guarantee of future results, nor investment advice. The Fairholme Fund’s holdings and sector weightings are subject to change. As of May 31, 2012, Sears securities comprised 10% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as required by law or regulation on a quarterly basis through reports to shareholders or filings with the SEC within 60 days after quarter end. A complete list of the Fairholme Fund’s top ten holdings is available on our website at www.fairholmefunds.com. The Fairholme Fund is non‐diversified, which means that it invests in a smaller number of securities when compared to more diversified funds. Therefore, the Fairholme Fund is exposed to greater individual security volatility...
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...G1 28 of G1 28 of G1 28 of G1 29 of G1 Page-2 Section – G2 :: Technical specification requirements for Application Packages Sl. No. Title Page No. / Section No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Part-A – Essentially Required by most Utilities for setting up an IT backbone for collection of baseline data, Energy Accounting / Auditing and establishment of Customer care centers Introduction System Functionality Module : Meter Data Acquisition Module : Energy Audit Module : New Connection Module : Disconnection & Dismantling Module : GIS based customer Indexing and asset mapping Module : GIS based integrated network analysis module Module : Centralized Customer Care Services Module : Management Information System (MIS) Module : Web Self Service Module : Identity and Access Management system Module : System Security Requirement Part-B – Requirement based implementation of Commercial Processes like M,B,C for Utilities, who do not have such IT enabled systems Development of...
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...were chosen on the basis that they had a continuous listing on exchange for the entire period of analysis, or had the highest capitalization or turnover in their sectors in the period under study. Consequently, the sample has a slight bias towards large companies. From 2000 to 2012, the daily data on closing prices of the stocks and the KSE100 index were obtained from the Karachi Stock Exchange Data Portal, which is the primary source of all stock data in the country. Monthly stock returns for each stock are calculated using this data. Monthly market returns were calculated from the broadly-based, capitalization weighted KSE 100 index as the KSE 100 Index was taken as the market portfolio. The three months treasury-bill rate was used as risk-free rate. The data on six-month treasury-bill rates was obtained from the Market Treasury Bills Auction Results from the State Bank of Pakistan data Portal. Methodology- Betas are estimated using the single period, discrete time Market Model (MM) developed by Markowitz (1959) Shape (1963).The MM is expressed as, Rit = αit + βiRmt + εit, -----------------(1) Where Rit is the expected return on an asset “,i”, Rmt is expected return on market portfolio, proxied by the stock market index and βi is the “beta” or the measure of risk or market sensitivity parameter. Rit is measured as the continuously compounded return on the i'th security during time t, while Rmt is the corresponding return on the market. In equation 1, α and β are unknown...
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...Traditional views on capital structure point to the existence of an optimal capital structure. Critique the analysis of the traditional views on capital structure in light of the competing views offered by Modigliani and Miller along with their assumptions. Capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. Stewart C. Myers argues that there is “no magic” in leverage and there is nothing supporting a presumption that more debt is better. He adds that debt maybe better than equity in some cases, worse in others or it may be no better and no worse. Thus, all financing choices are equally good. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20bn dollars in equity and $80bn in debt is said to be 20% equity financed and 80% debt financed. The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's leverage. There are many views on capital structure including the traditional views as well as the competing views offered by Modigliani and Miller. Traditional views on capital structure point to the existence of an optimal capital structure. An optimal capital structure is simply a mix of debt and equity which maximizes the value of the firm or minimizes the cost of capital. According to the traditional views on capital structure, changes in capital structure benefit the stockholders if and only...
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...Background about Smartphones 1 Defined Smartphone 1 Different applications on a Smartphone 1 Problem Statement 3 Security Risks 3 Analysis 4 Viruses 4 Threats 5 Recommended Solution and Implementation 6 6 6 References 7 Introduction Statement If you've ever wondered exactly what a smartphone is, well, you're not alone. How is a smartphone different than a cell phone, what makes it so smart, and how secure is the device? Firstly, IBM designed the first smartphone in 1992. It was called Simon. The smartphone was presented that year as a concept device in Las Vegas at the computer industry trade show known as COMDEX. The first cell phone, on the other hand, was demonstrated 19 years before the first smartphone (Wikipedia). Smartphones are phones that provide a new genre of application than the standard cell phone. They provide phone plus Internet connectivity and storage, text and multimedia, and multi-tasking. In a nutshell, a smartphone is a device that lets you make telephone calls, but also adds in features that you might find on a personal digital assistant or a computer, such as the ability to send and receive e-mail, scheduling and contact management software, edit Office documents, as well as a built-in camera and mp3 capabilities. However, with the access to the Internet the phone is now subjected to more security issues. If a person can hack the phone, it would enable them to have unlimited information about the consumer. By definition...
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...midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions. In today’s competitive market, individuals who possess essential business and technological skill enjoy a significant advantage over their peers. This is particularly true if your expertise includes SAP software. The SAP Certification provides that competitive edge. When you are sap certified, you join a distinguished community of experts recognized globally. Today more than 14,000 consultants and users worldwide are part of this exclusive community.In SAP we have the following modules: * Sales and Distribution (SD) * Production and Planning (PP) * Plant Maintenance (PM) * Material Management (MM) * Finance & Costing (FI CO) * Human Resources (HR) * Sap Basis * SALES AND DISTRIBUTION SAP SD refers to the sales and distribution module which is aimed to manage customer based activities and it includes the pricing, processing sales orders, picking, packing and shipping. The module is designed to provide a complete overview of the process of sales and distribution. It is a part of logistics module which is used to support the customer and sales related activities in a company. Creating modules and organization structure in SD: The...
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...management is to maximize the value of the equity shares of the firm. Given this objective, the firm has to choose that financing mix/capital structure that results in maximizing the wealth of the equity shareholders. Such a capital structure is called as the optimum capital structure. At the optimum capital structure, the weighted average cost of capital would be the minimum. The capital structure decision influences the value of the firm through its cost of capital and can affect the share of the earnings that pertain to the equity shareholders. Introduction to Capital Structure Theories There are 4 basic Capital Structure theories. They are: 1. Net Income Approach 2. Net Operating Income Approach 3. Modigliani-Miller (MM) Approach and 4. Traditional Approach Generally, the capital structure theories have the following assumptions: 1. There are no corporate taxes (this assumption has been removed later). 2. The firms use only 2 sources of financing namely perpetual debts ad equity shares 3. The firms pay 100% of the earnings as dividend. This means that the dividend pay-out ratio is 100% and there are no earnings that are retained by the firms. 4. The total assets are given which do not change and the investment decisions are assumed to be constant. 5. Business risk is constant over time and it is assumed that it is independent of the capital structure. 6. The firm has a perpetual life. 7. The firm’s earnings before...
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...Data sheet acquired from Harris Semiconductor SCHS016C – Revised September 2003 The CD4001UB types are supplied in 14-lead hermetic dual-in-line ceramic packages (F3A suffix), 14-lead dual-in-line plastic packages (E suffix), 14-lead small-outline packages (M, MT, M96, and NSR suffixes), and 14-lead thin shrink small-outline packages (PW and PWR suffixes). Copyright © 2003, Texas Instruments Incorporated PACKAGE OPTION ADDENDUM www.ti.com 11-Nov-2009 PACKAGING INFORMATION Orderable Device CD4001UBE CD4001UBEE4 CD4001UBF CD4001UBF3A CD4001UBM CD4001UBM96 CD4001UBM96E4 CD4001UBM96G4 CD4001UBME4 CD4001UBMG4 CD4001UBMT CD4001UBMTE4 CD4001UBMTG4 CD4001UBPW CD4001UBPWE4 CD4001UBPWR CD4001UBPWRE4 CD4001UBPWRG4 (1) Status (1) ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE ACTIVE Package Type PDIP PDIP CDIP CDIP SOIC SOIC SOIC SOIC SOIC SOIC SOIC SOIC SOIC TSSOP TSSOP TSSOP TSSOP TSSOP Package Drawing N N J J D D D D D D D D D PW PW PW PW PW Pins Package Eco Plan (2) Qty 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 25 25 1 1 50 Pb-Free (RoHS) Pb-Free (RoHS) TBD TBD Green (RoHS & no Sb/Br) Lead/Ball Finish CU NIPDAU CU NIPDAU A42 A42 CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU CU NIPDAU MSL Peak Temp (3) N / A for Pkg Type N / A for Pkg Type N / A for Pkg Type N / A for Pkg Type Level-1-260C-UNLIM...
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...cost pools following the model below (Figure 1). Please note that the payroll for the FOH was $12,521.06 and the payroll for the BOH was $17,671.94 for April, 2014. Figure 1 [pic] Table 1 | April 2014 | | |Total Revenue |$ 91,460 | |CGS - Food |31,405 | |CGS - Beverage |1,220 | |Supplies |2,756 | |Accounting |250 | |Transportation |186 | |Security |33 | |Bank charges |49 | |Equipment rental |1,000 | |Entertainment |335 | |Insurance |312 | |License fees |500 | |Telephone |143 | |Linen & Laundry |677 | |Office supplies |408...
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...shareholders. This report addresses the importance of the capital market and the efficient market hypothesis theories. The various source of finance available to large companies and the related cost. As well as the importance of the dividend decision and its possible affect on the company’s share price. [pic] 2.0 The role and importance of capital markets and efficient market hypothesis (EMH) [pic] The Role and Importance of Capital Markets A capital market is a market for the trading of long term securities such as, but not limited to debt and equity securities. A capital market which includes bond markets and stock exchanges serves two major functions. Firstly, it acts as a primary market for issuing new equity and debt capital. This means that companies[1] who want to raise new financing for investment projects or business expansion can source funding via this market. Secondly, it also acts as a secondary market for trading (that is to say buying and selling) of existing securities. The secondary market also serves as a source of pricing information for the primary market. Capital markets provide important benefits for investors, companies and the economy as a whole. Some of the main benefits include: ▪ Improved market efficiency: capital markets provide a platform for the effective and efficient allocation of investment funds across economies. This ensures that market forces are brought to bear on large cross sections of financial transactions in the economy which should...
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...Case Study: PizzaPalace’s Capital Structure Made by A. C a. Provide a brief overview of capital structure effects. Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows. The capital structure decision change the value of the firm either through the the free cash flow or the cost of capital. V = ∑ ∞ t=1 FCFt (1 + WACC)t With FCF= NOPAT-change in ( NOWC+NFA) WACC= wd (1-T) rd + wers An additional debt has an effect on WACC and FCF: On WACC: -debt increase the cost of stock rs as the stockholders require a higher return due to the risk associated with additional debt -debt reduce the tax paid by the company as the interest is tax deductible -debt increase the risk of bankruptcy so debtholders will require a higher promised return rd ***low taxes Vs high cost of equity,high cost of debt => uncertain effect on WACC On FCF: -the probability of bankruptcy increases and generates direct costs ( legal fees,fire sales..) and indirect costs: lost customer s( NOPAT decreases) , reduction in productivity of employees , and reduction in credit offered by suppliers ( A/P decrease so NOWC increase ) - bankruptcy risk affects agency cost : decrease them bu reducing wastful spending And increase them by causing the manager to be too risk averse: underinvestment...
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...Ransomware Discuss the threat When infected restricts you to access to a computer system. This will become more refined in its targets and methods. Experts predict that the variants of ransomware that hurt the security software that are installed within a computer may particularly target the endpoints which sign up with cloud-based storage solutions like Google Drive, Dropbox, OneDrive and many more. On detecting the endpoint, ransomware will exploit the stored personal credentials of the logged-in user and will even infect the cloud storage that is backed up. McAfee has warned that ransomware attackers will try out as many ways possible to shell out ransom payments from their victims. Degree of damage The most advanced and most damaging ransomware in the wild at the moment, specifically targeting U.S. businesses and individuals. It's a $70 million per year criminal enterprise. Its magnitude is now confirmed by law enforcement. Some quick math shows $18,145 in costs per victim, caused by network mitigation, network countermeasures, loss of productivity, legal fees, IT services, and/or the purchase of credit monitoring services for employees or customers. As you can see, the total costs of a ransomware infection goes well above just the ransom fee itself, which is usually around $500 but can go up to $10,000. What it attacked Ransomware is a type of malware that infects a computer and restricts a user’s access to the infected computer. This type of malware...
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...selling it at a higher price in another market and thus earning a riskless profit. MM broadened this concept. They show, under a set of assumptions, that personal debt can be used to cause the risk of two different stocks to be the same but the returns on the stocks can be different. Then, one could buy the cheaper stock and simultaneously sell the more expensive one and end up earning a riskless profit. Using this arbitrage concept, they demonstrated that if an unleveraged firm had a higher value that a leveraged firm, then investors could use “homemade” leverage to earn a riskless profit by selling the leveraged firm’s stock and borrowing to buy stock in the unleveraged firm’s stock. So, investors would get to the same debt position and have the same risk, but earn a higher profit. The MM conclusions were based on a number of assumptions, and in the real world, those assumptions are not correct. Investors cannot necessarily borrow at the same rate as corporations, interest rates increase with the amount borrowed, bankruptcy costs do exist, and so on. Moreover, corporations are more likely to use cash flows to service their own debt than they are to pay dividends in bad times to enable stockholders to service “homemade” leverage debts, which could result in additional risk to the personally leveraged investor. It should be noted that many of the arguments against the MM assumptions are valid if one thinks about individual investors like college professors...
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